Title

International Technology Diffusion: Effects of Trade and FDI

Document Type

Article

Publication Date

2005

Source Publication

Atlantic Economic Journal

Abstract

There has been little analysis of the effect of inward FDI on international R&D diffusion, especially in LDCs, although FDI has become the core of international production and LDCs have been receiving an increasing share of world FDI over the past few decades. Using data from 57 countries from 1988 to 2001, we find that both FDI and trade serve as important channels of international technology diffusion. However, there exist heterogeneous effects of FDI in DCs and LDCs. For inward FDI to promote technology diffusion in LDCs, a certain threshold of human capital has to be reached.

Comments

Atlantic Economic Journal, Volume 33, Number 4, 437-449 (2005). DOI: 10.1007/s11293-005-2871-1